[06] SARGSYAN SEES OFFICIAL TURKISH-ARMENIAN RELATIONS BEING ESTABLISHED LATER THIS YEAR

Some critics are trying to falsely paint the global economic crisis as
Turkey's crisis or the result of government economic policies, said Prime
Minister Recep Tayyip Erdogan yesterday. At a ceremony honoring Turkey's
most successful small- and medium-seized enterprises (SMEs), Erdogan
stressed that the crisis originated in the US and now has spread across the
globe to affect all countries, including Turkey. As soon as initial signals
of the crisis emerged, the government began to take necessary measures to
counter it, he added. Pointing to a comprehensive government package to
combat the crisis, he said that the Central Bank had injected TL 10 billion
into Turkey's financial markets in the first half of last year. Touching on
ongoing talks with the International Monetary Fund, Erdogan said the
government will sign a new standby agreement with the Fund so long as doing
so serves Turkey's interests. If the IMF puts forth unacceptable provisions,
Turkey can go its own way with its own resources, he said, adding that a
standby agreement should be based on mutual benefits. Pointing to how
Turkey's debt to the IMF had dropped from some $23.5 billion when his party
came to power in 2002 to $8 billion today, Erdogan said, "Turkey is a
powerful country and we must be aware of this power." Talks on a new Turkey-
IMF deal were suspended late last month, but both sides have said they hope
an agreement will be reached soon. Turkey's previous successful standby
agreement with the Fund ended last May. In related news, Erdogan yesterday
attended the opening of a historic building restored by the Istanbul
Chamber of Commerce (ITO). Speaking at the event, Erdogan said that all of
Turkey's historic heritage from the civilizations and cultures which once
called Anatolia home should be protected without exception, adding that
they all belong to this land and the Turkish people. /Turkiye-Milliyet/

Foreign Minister Ali Babacan yesterday went to Baku, Azerbaijan for a one-
day official visit and talks with his Azeri counterpart Elmar Mammadyarov
and President Ilham Aliyev. They discussed regional issues such as the
Nagorno-Karbakh conflict between Armenia and Azerbaijan. In related news,
Babacan also met with his Ethiopian counterpart Seyoum Mesfin, who was in
Ankara for an official visit. /Today's Zaman-Star/

Main opposition Republican People's Party's (CHP) leader Deniz Baykal
yesterday met with European Union Commissioner for Enlargement Olli Rehn.
Afterwards, Rehn told a press conference that they would continue working
with both the ruling and opposition parties. Stressing that the CHP values
Turkey's EU bid, Baykal said, "We'll do our part to overcome the
difficulties." Stating that these difficulties should be overcome by a
positive approach from both parties and that the negotiation process should
end in full membership, Baykal said, "CHP ties with the EU go beyond the
official and governmental levels." He added, "It's our duty to support the
negotiation process. Our contacts with EU officials will continue." For his
part, Rehn stated that the commission works with the democratic powers in
candidate countries. "We'll continue working with both the ruling and the
opposition parties," he added. "We'll continue our longstanding cooperation
with Baykal." /Milliyet/

Marking the Nationalist Movement Party's (MHP) 40th anniversary yesterday,
MHP leader Devlet Bahceli and top party officials and deputies visited
Anitkabir, Ataturk's mausoleum, and laid a wreath at his tomb. In the
memorial guestbook, Bahceli wrote, "Our aim is to glorify the republic
which you entrusted to us." Afterwards, the group visited the tomb of
Alparslan Turkes, who founded the party. /Star/

Egyptian President Hosni Mubarak is to visit Turkey tomorrow following a
European tour which included France and Italy. In his contacts, Mubarak is
scheduled to hold separate meetings with President Abdullah Gul and Prime
Minister Recep Tayyip Erdogan. During these talks, they are expected to
take up a number of issues, including Gaza, the need to form a Palestinian
unity government, and this week's elections in Israel. Mubarak will
reportedly urge Turkey to help mediate between Hamas and Fatah to form a
new coalition government. Mubarak also will reportedly invite Gul to attend
an international summit next month in Cairo on reconstructing Gaza in the
wake of Israel's attacks. /Aksam/

[06] SARGSYAN SEES OFFICIAL TURKISH-ARMENIAN RELATIONS BEING ESTABLISHED
LATER THIS YEAR

In an interview with the MediaMax news agency in Munich, Armenian President
Serzh Sargsyan yesterday said, "If recent contacts continue in the same
atmosphere in the future, I can say that there will be no problems starting
official relations between Armenia and Turkey in the second half of this
year. Relations between the two countries will soon be different and better
quality." /Hurriyet/

Columnist Osman Ulagay comments on the international economic crisis. A
summary of his column is as follows:

"We're facing a time where everybody is learning extraordinary new lessons.
Actually, I don't know what people unable to grasp how huge the global
crisis is or how it will affect Turkey are thinking now. But all over the
world, we can see that the global economy has reached a breaking point and
most believe there's no turning back. In such an environment, everybody
needs to look at their actions and find ways to adjust to new conditions
and get through the crisis with minimal damage. Obviously, it's important
that governments take certain measures to help their economies overcome the
crisis, but there are also very important roles to be played by business
owners and managers and independent consultants.

Ways to mitigate the crisis' impact on small- and medium-sized enterprises
(SMEs) were discussed during the recent Crisis, Industry and Technology
Workshop held by the Istanbul Chamber of Commerce's Quality and Technology
Expertise Council (KATEK). The workshop's final declaration, drawn up by
moderator Ali Akurgal, has interesting things to say. The declaration says
that we learned about quality during the crisis of the 1990s and
productivity during the crisis of the early 2000s and that this crisis will
teach us about innovation, and then lists measures which need to be taken.
It also stresses that Turkey's SMEs have 'clear intellectual capital' and
that if these key factors of innovation are lost due to the crisis,
businesses will suffer permanent damage.

From the list, these concrete suggestions to businesses caught my eye:

Firms which have to temporarily stop operations should lend their workers
with intellectual capital to other firms, again temporarily

Businesses should share some of their machinery and plants with other
businesses to boost capacity and cut costs

Similarly, firms should use common supply chains and distribution networks
to reduce costs

Firms low on cash due to the crisis should join forces with financially
strong firms operating in other sectors

Firms should use technology to provide services that other businesses are
unable to and thus gain greater market share

If, for example, making technological breakthroughs in their businesses
during the crisis is impossible, firms should look for new distribution
channels and seek new markets."